2.1.2 Environment

Purpose:

To explain the Veoneer environmental requirements.

Input from Veoneer:

• Veoneer Environmental Policy
• Veoneer Climate Policy
• Veoneer Standard of Substance Use Restrictions

Requirements:

Environmental Policy

Veoneer has established an Environmental Policy and requires its suppliers to undertake a similar environmental responsibility. For all activities, the supplier shall comply with legal (local, national, and global) environmental requirements.

For a full environmental commitment, our suppliers should implement an Environmental Management System, preferably based on ISO 14001 and to be certified accordingly.

Climate Policy

During 2021, Veoneer set targets related to the climate, which are described in the Veoneer Climate Policy (VS030 Appendix E).

In order to meet the second target : Carbon neutral products by 2039   (from sourcing to disposal)

 Veoneer needs to ensure its business partners are also adopting the same ambition regarding carbon emission, with a compatible planning and therefore Veoneer suppliers are requested to :

·        Report their carbon emissions

·        Provide their own targets regarding carbon neutrality with associated dates

·        Share their detailed action plan

Based on the input received, Veoneer supply base will be classified against our climate policy and supplier status will be considered for new business decisions.

Material Data System

All substances used in production part materials shall be declared electronically in IMDS (International Material Data System).

For Chinese customers material data entry in CAMDS (China Automotive Material Data System) may also be requested, as needed.

The declaration in IMDS shall comply with the Veoneer Standard, VS005 (Substance Use Restrictions). VS005 covers material data reporting requirements and substance use restrictions, for Veoneer and its suppliers.

The IMDS declarations shall comply with the IMDS Recommendations published on the IMDS web site (http://www.mdsystem.com).

The supplier shall submit an approved IMDS declaration with the PPAP package. As a consequence, the supplier shall complete the IMDS entry in the IMDS database a reasonable time period before the agreed PPAP-submission-date. Only this procedure will give Veoneer the opportunity to approve the IMDS-entry prior to the supplier's PPAP submission date. In case Veoneer does not respond to the IMDS declaration before supplier's PPAP submission date, it is sufficient for the supplier to submit only the IMDS entry confirmation with the PPAP package. PPAP approval can only be done with an approved IMDS Declaration.

Further reporting requirements and guidelines for suppliers about how to declare materials in IMDS are defined in Veoneer IMDS Reporting Guidelines. This guideline is also providing instructions about specific company ID's for different Veoneer companies.

Substance Use Restriction

The substance use restrictions are defined by the Veoneer Standard VS005 (Substance Use Restrictions).Certain substances (ref.: VS005; Declarable, Restricted and Forbidden Substances List are classified as Declarable, Restricted or Forbidden. Materials, components and products containing substances classified as forbidden must not be used. Restricted substances must not be used for certain applications or projects and can be subject to sudden phase-out requirements.

The U.S. Securities and Exchange Commission (SEC) has finalized rules requiring publicly traded manufacturing companies to report if their products contain metals derived from certain minerals defined as “Conflict Minerals”. For this reason, suppliers shall conduct due diligence of their supply chains to determine if any of the products supplied to Veoneer contain Conflict Minerals. Further requirements regarding Conflict Minerals are defined in VS 5 (Ref VS005 and VS005 Appendix C - Veoneer Policy on Conflict Minerals). Veoneer plans to use the web-based tool by iPoint as our primary tool to collect and analyze information submitted by the suppliers. This tool has been developed under the lead of the US Automotive Industry Action Group (AIAG).

Suppliers to Veoneer companies in Europe must meet the requirements under the European Regulation on Chemicals, REACH. Communication through the supply chain is obligatory. For more information about REACH, see AIG, Automotive Industry Guideline on REACH, published on the ACEA website (http://www.acea.be/).

Output from Supplier:

• Installation and implementation of an environmental management system according to ISO 14001.
• Communication of their own climate policy with timely defined objectives and reporting of their carbon emissions. 
• IMDS declaration for all materials.
• If applicable: Pre-registration/registration of chemicals to ECHA (European Chemical Agency) via the REACH-IT portal on the ECHA website (http://www.echa.europa.eu/).
• If applicable: Due diligence to see origin of Conflict Minerals.

Required Documents:

• PPAP including: Documentation of approved IMDS declaration as a ground rule. A confirmed IMDS declaration in case Veoneer has not responded to the IMDS entry.
• If applicable: Report in iPoint Conflict Minerals Reporting, or similar reporting tool, when requested by Veoneer.

Reference Documents:

• IMDS (http://www.mdsystem.com)
• VS005 (Substance Use Restrictions)
• Veoneer's Environmental Policy
• Veoneer Climate Policy
• ISO 14001:2015 Environmental management systems-Requirements with guidance for use
• VSM-General Requirements/Specific Requirements/Quality-PPAP
• Veoneer IMDS Reporting Guidelines
• AIG (http://www.acea.be/)
• ECHA (http://www.echa.europa.eu/)
• The Conflict Minerals Act